Gold rates jump 2% to hit record high, silver tops ₹3 lakh per kg mark on Trump tariff threats, dollar's weakness

Gold price today: Gold rates saw solid gains, jumping to record highs on the MCX on Monday, January 19, morning, as US President Donald Trump's tariff threat on Greenland raised geopolitical risk, driving investors to safe-haven assets.

MCX gold February futures jumped by nearly ₹3,000, or over 2%, to its record high of ₹1,45,500 per 10 grams.

MCX silver March futures surged by over ₹16,400, or nearly 6%, to their record high of ₹3,04,200 per kg.

The major force driving gold and silver prices is increased geopolitical risks. Trump's aggression over Greenland and his threat of tariffs on European countries have raised concerns that the global economy could be on the verge of a significant slowdown.

Gold is considered a hedge against geopolitical and economic uncertainties.

Trump on Saturday threatened multiple European Union nations, traditional US allies in NATO, with tariffs of up to 25% until he gains control of Greenland.

Media reports said several European leaders discussed possible retaliation, including bringing back last year’s plan to impose tariffs on US goods.

According to the report, one option under consideration is activating the bloc’s anti-coercion instrument, a trade defence mechanism designed to counter economic pressure from foreign governments. French President Emmanuel Macron suggested on Sunday that the EU should consider using the tool.

The dollar index corrected over 0.30% to reach near 99, making greenback-backed bullion cheaper for overseas buyers.

Additionally, hopes for US Federal Reserve rate cuts are supporting gold prices.

According to news agency Reuters, Federal Reserve Vice Chair for Supervision Michelle Bowman highlighted job-market weakness on Friday, and said the Fed should be ready to cut interest rates again if needed.

"The rally in gold and silver was fueled by a strong shift toward safe-haven assets amid renewed trade tensions between the US and Europe. President Trump’s decision to impose fresh tariffs on imports from eight European nations has heightened fears of retaliation and a broader trade conflict," Rahul Kalantri, VP of commodities at Mehta Equities, noted.

"Added concerns around political stability, questions over US monetary policy independence, and ongoing geopolitical risks have further supported gold. Expectations of additional US rate cuts continue to underpin bullion prices after a strong performance in 2025," Kalantri said.

The focus will be on the GDP prints of China and the US this week. The annual meeting in Davos - from January 19–23- will also be on the radar of investors.

Gold and silver: Key levels to watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,555 and $4,434, while silver has support at $86.40 and $84 in today’s session.

On the MCX, Jain said gold has support at ₹1,41,400 and ₹1,40,000, while silver has support at ₹2,83,500 and ₹2,78,800.

According to Kalantri, gold has support at $4,552 and $4,495, while resistance is at $4,640 and $4,690. Silver has support at $87.10 and $84.75, while resistance is at $92.15 and $94.48.

In INR, gold has support at ₹1,41,650 and ₹1,40,310 while resistance is at ₹1,44,150 and ₹1,45,670. Silver has support at ₹2,85,810 and ₹2,82,170 while resistance is at ₹2,94,810 and ₹2,96,470, said Kalantri.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.